Leading the Way
How leadership works on the ranch.
contributed article by B. Lynn Gordon Leader Consulting
leaderconsulting.biz
SIBLING SOLUTIONS - PART ONE KEY CONVERSATIONS FOR ROLES & DECISION-MAKING WITH SIBLINGS
One of the elements many in
October 2019
agriculture are most proud is the multi-generational families who have spanned several decades to carry on the legacy of their parents, grandparents, and possibly great-grandparents. As the size and scope of ranching operations continue to grow due to the technologies now afforded in the production of livestock and crops, many operations are not only multi-generational, but include or involve siblings, either directly or indirectly, in the business model.
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Working with your siblings can be rewarding as you experience family traditions and work to carry on a legacy. However, it can also be one of the most significant challenges you may encounter, especially when faced with the choices and steps involved in succession of the business. Every family situation is unique. For some, one or more of the siblings may have been more involved before the formal succession process begins, and in some cases, none of the siblings may have been involved in the daily farm roles. The time for a structured transition discussion to take place may be the first-time siblings are brought together to discuss the
future of the family business. Crucial conversations will need to take place to work through the succession process and further define the roles and decision-making process.
THE FAMILY BUSINESS MODEL Family businesses can present challenges. A family structure emphasizes ownership, harmony, relationships, acceptance, and tradition, whereas a business structure is motivated to focus on employment, change, profits,
compensation, and results. Trying to make these structures sync together is challenging because they are rooted in different values and focuses. Oftentimes, the motivators of the business goals and the family goals are different and may not align and as ownership is defined further complexity is added to the model. A family business system consists of three components, family, business, and ownership. How do these pieces fit together? In the foundation stage, these three circles are one, (laid overtop
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